HFA Holds Policy Briefing to Inform Members on New Click-to-Cancel Rule

Because fitness facilities are included in the new Click-to-Cancel Rule, the Health & Fitness Association (HFA), formerly IHRSA, hosted a policy briefing via Zoom on November 13 to inform operators and stakeholders about the implications of the ruling and to equip operators to adapt smoothly to regulatory changes while protecting their bottom line.

The rule’s provisions will take effect in two phases:

1. Misrepresentation Provisions: These provisions, which prohibit sellers from misrepresenting any material facts related to negative option features, will become effective 60 days after the rule’s publication in the Federal Register.

2. Disclosure, Consent, and Cancellation Provisions: Requirements for clear disclosures, obtaining consumers’ express informed consent, and providing simple cancellation mechanisms will take effect 180 days after the rule’s publication in the Federal Register. (This publication has not happened yet.)

The rule covers digital subscriptions, recurring physical services, and in-person memberships. The FTC's goal was to simplify the cancellation process for consumers and to prevent "negative option" practices, where ongoing charges continue without explicit consumer consent.

"HFA had a key role in advocating for industry-specific modifications in the rule, which now better reflects the realities of fitness businesses, thanks to our collective industry voice," said Mike Goscinski, the association’s vice president of government affairs, who presented the member-only briefing.

HFA has a longstanding commitment to advancing and protecting the fitness industry through effective advocacy and is still working with the FTC to make changes less disruptive for the industry. The HFA has requested implementation be delayed to mid-October 2025 so that fitness facility operators have more time to adjust their systems, review membership agreements, and ensure that all points of consumer interaction comply with the new rule.

The Final Rule

The FTC released its final rule on October 16, 2024, incorporating several modifications that reflect feedback from HFA and other industry groups. The rule now provides greater flexibility in areas such as cancellation timing, identity verification, and the use of "save" options. For example:

• Cancellation flexibility: The final rule allows fitness facility operators to process cancellations at the end of the current billing cycle rather than immediately upon notice. This practical approach prevents mid-month cancellations that complicate billing and usage, aligning with standard gym membership terms.

• Secure verification process: The FTC recognized the importance of securing identity verification for cancellation requests. Facilities are not required to enable “instant” termination upon clicking a button. Instead, a cancellation request can initiate a secure, orderly process that aligns with identity and financial safety standards.

• Save options permitted with consent: Operators are allowed to offer save attempts—such as downgrades or membership freezes—as long as they receive explicit consumer consent. This flexibility helps reduce member churn by providing alternative solutions tailored to specific member needs​.

Legal Landscape

A coalition of industry groups, including the U.S. Chamber of Commerce, International Franchise Association, and Consumer Technology Association, has filed lawsuits challenging the FTC rule's broader applicability and impact on specific industries, including fitness. The lawsuits argue that the rule's breadth overreaches in areas where existing protections suffice, which could influence whether or how the rule is enforced.

"These legal challenges underscore concerns that the rule may impose disproportionate costs or administrative burdens, especially on small businesses and franchises," Goscinski explained. "The outcome could result in modifications to or delays in the rule’s enforcement."

Conclusion

HFA is committed to advocating for fair and reasonable regulatory measures that protect consumers without hampering the fitness industry's growth.

Reach out to HFA for ongoing guidance as compliance measures are implemented and as the legal and political landscapes evolve. HFA will continue monitoring developments, providing updates, and supporting members through any future rule modifications or legal changes.

If you are an HFA member and you have questions or would like a recording of the briefing, please contact mgoscinski@healthandfitness.org.